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Ok here?s a graph for you (note the widening spread between the green and red lines) from this article http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History Key point from the article: Mortgage interest rates then started to inch downward in mid-2008, but the spread...

Go to any UK bank website and check their rates for a 10% deposit for yourself. You're just plain wrong if you think UK mortgages escaped the GFC like Australia did. I've just used the UK as an example of what happens to mortgages in a banking crisis and how lower rates can't be expected. Many...

UK mortgage rates and spreads were similar to Australia before the GFC, but definitely not after. Their banks were smashed in the crisis, many went under.

No the GFC increased the spread dramatically, same in a lot of other countries so the consumers are not benefiting from the low central bank rates. The exception in the UK are "tracker" rates where some people locked in a low spread before the GFC. UK banks are happy to get rid of these...

The RBA might drop interest rates but in a true banking crisis the banks can't pass the drop on. Just look at the UK where a lot of banks went under, even today their variable mortgage rates are between 4 and 5% for most new buyers when bank of England rate is only 0.5%

The result is yes and a worsening economy feeds a crash but it may not have been the initial trigger of the crash. If you do diversify into shares to protect against property going down just make sure it's not bank shares since then you're still effectively exposed to the property market (in...

It doesn't necessarily need a stuffed economy to drive prices down, one of the biggest drivers of property prices is the availability of credit. If credit was restricted or banks were unable to fund mortgages to the same extent, real estate prices would plummet, causing a destructive feedback...